Among them, the research house named: consumption, urbanization, innovation, environment, health care, culture and financial reform.

While the list offered similar investment ideas to those already mentioned by other research brokerages, the bigger standout was HSBC’s bullish tone towards China’s new administration.

It noted that events over the past week in Beijing suggest the new leadership is poised to deliver positive change, even though the final unveiling of the seven-member Politburo Standing Committee included a lineup that left out two reform-minded candidates.

The research house also said that the handover was an “orderly transition of power,” and it praised a key political report presented by departing President Hu Jintao as making the “right noises about the country’s direction in the next five years.”

HSBC said the 90-minute address delivered to the Party Congress on Nov. 9 -– viewed as influencing the reform agenda for the incoming leadership — made all the right noises, using the phrase “scientific development” 19 times, “socialism with Chinese characteristics” 79 times and “reform” 84 times. The phase “the people” appeared 145 times. The keywords show Beijing’s sensitivity to the need for reforms, HSBC said.

Still, while HSBC praised the open talk about reform, it also cautioned that delivering such reforms won’t be easy. In a nod to the challenges ahead, HSBC’s outlook for China’s economy calls for a slow recovery — more “U-shaped” than “V-shaped.”

It noted an improving backdrop, and that Chinese stocks were “fairly valued” rather than expensive.

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